# In the matter of Avani Projects and Infrastructure Limited

> NCLT judgment dated 2024-04-10. Citation: TCN-2024-NCLT-01754. This case involves an application filed by Raj Sekhar Roy seeking the delivery of vacant…

- **Court:** NCLT
- **Order date:** 10 Apr 2024
- **Citation:** TCN-2024-NCLT-01754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/avani-projects-and-infrastructure-limited-4f38e9e1

## Summary

### Background

This case involves an application filed by Raj Sekhar Roy seeking the delivery of vacant possession of premises located at Flat 5B & 5C, 59A Chowringhee Road, Kolkata, from Avani Projects & Infrastructure Limited, the corporate debtor. The applicant claims ownership of the flats and asserts that they were licensed out to the corporate debtor under leave and license agreements. The agreements, initially executed in May 2010, were renewed over time, with the corporate debtor failing to pay license fees since 2017 and continuing to occupy the premises illegally. The applicant also claims that the corporate debtor inducted a tenant, Suman Shaigal, without permission. The corporate debtor has been admitted to Corporate Insolvency Resolution Process (CIRP) by an

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## Facts

Raj Sekhar Roy, the applicant, claims ownership of Flat Nos. 5B and 5C at 59A, Chowringhee Road, Kolkata. These flats were licensed out to Avani Projects & Infrastructure Limited, the corporate debtor, under leave and license agreements initially dated May 1, 2010. The agreements were renewed, but the corporate debtor failed to pay license fees since 2017 and continued to occupy the premises illegally. The corporate debtor also inducted a tenant, Suman Shaigal, without permission. The corporate debtor was admitted to Corporate Insolvency Resolution Process (CIRP) on March 13, 2019. The applicant seeks recovery of possession and payment of outstanding dues, including occupational charges. The license agreements stipulated monthly license fees and security deposits.

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## Issues and analysis

### Issue 1: Whether the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) prevents the …

**Ratio:** The moratorium under Section 14 of the IBC does not prevent the recovery of possession

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**Reasoning:** The court reasoned that the corporate debtor was in illegal occupation of the premises

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**Interpretation:** Section 14 of the IBC imposes a moratorium on the initiation or continuation of

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**Application:** In this case, the license period had expired, and the corporate debtor had

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Raj Sekha…
- **Respondents:** Avani Projects &…; Ajay Kumar…

## Timeline

- **2010-05-01 — Leave and License…**: Initial leave and license agreement dated May 1, 2010, between the applicant and the…
- **2013-01-31 — Expiry of Init…**: The initial term of the leave and license…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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